The Spectrum of Property Yields

Abstract

In Chapter 12, we explained how the investment characteristics of property determine its yield and how the level of yields changes over time. But different property investments can have substantially different yields, mainly because of variations in their risk and growth potential. So now we shall examine the three main facets of property investments which determine their risk and growth potential, thereby explaining yields on individual investments. These three facets are (a) the investment interest, (b) the type of property over which the interest exists, and (c) the quality of the investment.